Document Sample
Stec Groep for WFIA/West-Holland
Foreign Investment Agency

          Stec Groep B.V.
          April 2003

1.   INTRODUCTION                                                                         1
     1.1 Foreign companies in West-Holland                                                1
     1.2 The contents of this report                                                      2

2.   SUMMARY                                                                              3

3.   FOREIGN-BASED COMPANIES BY COUNTRY OF ORIGIN                                         5
     3.1 Over 50% of foreign-based companies in West-Holland is from US and Germany       5
     3.2 Germany, United Kingdom and France are main contributors for Europe              5
     3.3 Largest facilities by continent                                                  8

4.   FOREIGN-BASED COMPANIES BY TYPE OF OPERATION                                         11
     4.1 Strong presence of sales & marketing and headquarters                            11
     4.2 Industrial operations less well represented                                      11

5.   FOREIGN-BASED COMPANIES BY SECTOR                                                    16
     5.1 The main sectors are: machines & appliances, IT and business services            16
     5.2 Strong presence of life sciences                                                 16

6.   REGIONAL OUTLOOK                                                                     19
     6.1 Within West-Holland The Hague attracts major share of foreign-based companies    19

7.   WEST-HOLLAND VERSUS THE NETHERLANDS                                                  23
     7.1 The Dutch database                                                               23
     7.2 West-Holland has a relatively large number of US-companies                       23
     7.3 Lower share of ‘traditional’ activities than national figure                     24
     7.4 Stronger presence of life sciences, chemicals, IT and services in West-Holland   24
8.    INTERNATIONAL ORGANIZATIONS                    27
      8.1 International organizations in The Hague   27

APPENDIX A                                           30

APPENDIX B                                           32
1.1 Foreign companies in West-Holland
West-Holland Foreign Investment Agency (WFIA) is the inward investment agency for the West-Holland
region. Key task of WFIA is international promotion of the West-Holland business climate in order to attract
                                       new foreign investment to the region. WFIA works for and with the
                                       main municipalities in the West-Holland region. Furthermore, activities
                                       are performed in strong co-operation with NFIA/Ministry of Economic

To support its international promotion activities, WFIA asked Stec Groep to provide an up-to-date overview
of foreign companies operating in West-Holland. The results of the research are summarized in this report. It
is the first time these figures are registered for the region. Therefore it is possible that the database involved
is not 100% complete. However, the information gathered during the research gives a very good impression
of the business operations of foreign companies in the West-Holland region 1, including the total number of
jobs involved, the sectors these companies operate in, the different activities involved, their countries of
origin and their location within the region.

Furthermore, the main international organizations and institutions, which the city of The Hague is known for,
are listed in this report. However, the number of international organizations and the employment involved are
not included in the results presented on foreign companies in West-Holland. This analysis is solely restricted
to commercial business operations.

In addition, this guide also provides further insight in the way foreign investors appreciate the business
climate in West-Holland. Several testimonial companies, among which major and long established investors
such as Nokia and Centocor as well as recently established parties such as Gilson and Wise Solutions, gave
their opinion on the regional business climate. In addition, they were asked why they choose to locate in the

    With at least 2 employees.

West-Holland region: what made them decide for the West-Holland region? The results of the interviews are
presented in separate boxes throughout the different chapters in this report.

1.2 The contents of this report
Besides the introduction, this report contains 7 chapters, each of which focuses on a different aspect of
foreign companies in West-Holland.
• Chapter two contains a short summary.
• Chapter three focuses on the foreign operations by country of origin.
• Chapter four gives an overview of the types of operations or activities performed by the business-
    operations of foreign companies in West-Holland.
• Chapter five provides insight in the sectors these companies operate in.
• Chapter six looks at the main cities in the region for foreign investment.
• Chapter seven compares the figures for West-Holland with those of the Netherlands as a whole.
• Chapter eight gives a short overview of the international organizations in West-Holland.

Several definitions and restrictions were used in constructing the database of foreign companies in West-
Holland. In appendix A of this guide, these definitions and restrictions are listed. The input for collecting
information about the foreign companies in West-Holland can also be found in this appendix. Appendix B
provides background information on the definitions that were used.


•   West-Holland is home to some 360 business-operations of foreign companies, creating approximately
    34.000 jobs.

•   A very large share (35%) of the foreign companies in West-Holland is US-based. The second largest
    country of origin is Germany with 66 companies operating in West-Holland (19% of all operations),
    followed by the United-Kingdom, which is responsible for more than 14% of the companies. Few
    companies are Asian: only 6% of the total number of companies.

•   Nearly 49% of the total employment among foreign companies is generated by American and German

•   Headquarters and sales- and marketing-offices are well represented in West-Holland; over 51% of all
    operations. Traditional activities, such as distribution, manufacturing facilities and wholesale, are of
    lesser importance (over 35% of all operations).

•   The main sectors foreign companies in West-Holland operate in are machines and appliances (16%), IT
    (14%) and business services (13%).

•   Life sciences is the sixth largest sector in West-Holland with nearly 6% of foreign companies and over
    5% of jobs. Compared to Dutch standards, these figures are relatively high.

    Aerospace                        Life iences                          IT

•   Over 73% of all foreign companies in West-Holland is concentrated in the following four major urban
    areas: The Hague/Rijswijk, Zoetermeer, Leiden and Delft. The Hague itself accounts for over 30% of
    the total number of operations and approximately 38% of jobs.

3.1 Over 50% of foreign-based companies in West-Holland is from US and Germany
The total number of foreign-based companies in West-Holland2 is almost 360. The total number of jobs
created by these companies is nearly 34.000 employees (see table 1).

Looking closer at the country of origin of the companies, the US-based operations are the most important
group of foreign-based companies in West-Holland. At least 35% of the companies are of US-origin, among
which are Centocor, IBM and EDS. The second largest group is formed by companies from Germany. This
country accounts for nearly 19% of all foreign-based companies in West-Holland. T-Mobile and Siemens, for
instance, are German companies that have large facilities in the West-Holland region. The direct employment
generated by the American and German companies accounts for nearly 49% of the total employment
created by foreign-based companies in West-Holland (see table 1 and figure 1 and 2).

3.2 Germany, United Kingdom and France are main contributors for Europe
Besides Germany, the United Kingdom and France are the main contributors for Europe. For these countries
total employment figures are more comparable. UK-based companies, however, are much smaller (average
size 102) than French companies (average size 231).

Of all Scandinavian companies, 50% is from Sweden. Ikea, for example, has its European Headquarters in

Asian companies are not so well represented in West-Holland and they are also relatively small. Of these
Asian companies 50% is Japanese, 15% is from Korea and 10% is Chinese.

    With at least 2 employees.

Table 1: Number of companies and number of jobs
Country/Region                      Number of companies             Direct employment             Average size
                                            Abs.               Rel.          Abs.          Rel.
United States                                 126              35%          9.730          29%                    77
Germany                                        66              19%          6.643          20%                   101
United-Kingdom                                 51              14%         5.1 77          15%                   102
Scandinavia                                    24               7%          2.466           7%                   103
France                                         16               4%          3.700          11%                   231
Europe (other)3                                40              11%          4.585          13%                   115
Asia                                           20               6%            905           3%                    45
Other                                          13               4%            674           2%                    52
Total                                         356             100%         33.880         100%                    95
Source: Stec Groep, 2003

    Figure 1: Number of foreign-based                                Figure 2: Number of jobs by
    companies (%) (N=356)                                            foreign-based companies by region
                                                                     (%) (N=33.880)
                                             United States
                                             Europe (other)

Source: Stec Groep, 2003                                       Source: Stec Groep, 2003

    Includes for instance: Belgium, Switzerland and Austria.

Since 1996, the US-based company Harley Davidson has been established in Leiderdorp. The branch with currently 15
staff employed, is mainly functioning as sales-, marketing-office and back-office for Harley Davidson in the Benelux.

Before Harley Davidson opened its operation in Leiderdorp, the Benelux market was served by a local importer in
Warmond, a small town near Leiderdorp. ‘When we decided to establish our own office in the Netherlands we first
looked in the direct surroundings of Leiden. This enabled our employees from the former importship in Warmond to
move with us’, Mr. Mulder, controller at Harley Davidson declared. About two years ago, Harley Davidson has
considered an alternative location in the Amsterdam area. In the end, however, they decided to stay in Leiderdorp. ‘The
office costs are very important to us. In the Amsterdam area, the office costs are significantly higher than in the Leiden
area. Moreover, the current building is rather specialized, both the office and storage/garage’, Mr. Mulder said.

Regarding the strengths of the regional business climate, Mr. Mulder stated: ‘The opening of our location close to the
A4 motorway (The Hague – Amsterdam) and the spacious parking-facilities near our branch are positive points.
Besides, the proximity of the Schiphol Airport is an advantage for our employees from the Oxford branch in the UK,
who can come over straightforwardly’.

Mr. Mulder knows from his own experience that the international community as well as the presence of international
schools in the The Hague region are important advantages for international companies and foreign employees. There are
no significant weak points in the regional business climate according to Mulder.

Harley Davidson
Rietschans 72, Leiderdorp
+31 71 581 37 37
Mr. M. Mulder, Controller

3.3 Largest facilities by continent
Tables 2, 3 and 4 provide an overview of the largest US, Asian and European companies in the West-Holland
region. The name of the company, the location, the core activity and the sector is listed.
Table 2: Top 5 US-companies

Company                           Location                   Main activity           Sector
1.   Centocor                                      Leiden      Production/assembly             Life sciences
2.   Casema                                    The Hague              Headquarters                        IT
3.   EDS International                         The Hague           Sales/marketing                        IT
4.   Hercules                                     Rijswijk         Sales/marketing                Chemicals
5.   Avery Dennison                          Hazerswoude       Production/assembly            Industry other
Source: Stec Groep, 2003

Table 3: Top 5 Asian companies

Company                           Location                   Main activity           Sector
1. Yamanouchi Europe                            Leiderdorp            Headquarters           Life sciences
2. Toshiba Medical Systems                     Zoetermeer             Headquarters/ Machines & appliances
Europe                                                                   Wholesale
3. Fides / Kirin Agribio EC                     Maasland                 Wholesale          Industry other
4. JVC                                            Leiden              Headquarters             Electronics
5. Samsung Electronics                             Delft              Headquarters             Electronics
Source: Stec Groep, 2003

Table 4: Top 5 European companies

Company                    Location                   Main activity      Sector            Country
Dutchtone/Orange                         The Hague       Headquarters                 IT

Siemens                        Zoetermeer/The Hague   Sales/marketing        Electronics

ABB Lumus Global                         The Hague               Other       Chemicals

T-Mobile (former Ben)                    The Hague       Headquarters                 IT

Kvaerner                                 Zoetermeer      Headquarters      Construction

Source: Stec Groep, 2003

For some years, the American company Wise Solutions has been established in the Netherlands, at the President
Kennedylaan in The Hague. From there Wise Solutions operates as a branch-office/sale-office to serve European clients.
At the moment, 5 persons are employed at this facility, with an expected growth to 8 till 10 people by the end of

The decision to locate in the Netherlands was made at the end of the 1990s. Next to the Netherlands, England and
Germany were also considered: ‘Both the central location of the Netherlands in Europe (close to clients and the
consumers market), the different cultures and languages in the Netherlands and the attractive tax climate were the
decisive location factors’, according to Mr. Versteeg, director of Wise Solutions in the Netherlands. ‘Furthermore, there
is great support when a company is planning to set up a branch-office in the Netherlands’. Wise Solutions started in
Rotterdam, the decision to settle in The Hague was made about two years ago. Mr. Versteeg: ‘We were looking for a
location in the center of the Randstad (The Hague, Utrecht or Amsterdam). Amsterdam turned out to be too expensive
and the accessibility was less attractive. In the Hague the traffic is less congested. Personal motives have also played a
role. For me, The Hague is a pleasant city’.

Regarding the qualities of the regional business climate he states: ‘The accessibility by car is good in The Hague.
Furthermore, the rental prices are relatively favorable (compared to Amsterdam). Another positive point is the real
international community, with hotels, clubs, et cetera’. Mr. Versteeg has a short comment on the accessibility of the
location: ‘At the moment, we have access to free parking spaces, both positive for us and our clients. This could
change in the near future, which is not favorable for our company’. As for the labor-market, Wise Solutions has nothing
to complain about at the moment: ‘When we first started it was more difficult to find technical personal, now with the
recent economic situation it is easier to attract skilled personnel. In addition, the labor-market is not restricted to the
region. Many of our employees live in the Utrecht region’, Mr. Versteeg said.

At the moment, there are also two expats working at Wise Solutions. Mr. Versteeg is less enthusiastic about the Dutch
rules and regulations. As a small foreign company, it is very hard to get people of the foreign head-office to transfer to
the Netherlands: ‘To get know-how from abroad, you have to comply with many conditions, and then months pass till
someone finally gets his permission to work’. Besides the Dutch rules and regulations on expats, Mr. Versteeg is less
positive about the fact that the HSL is perhaps not running through The Hague: ‘International accessibility is of great
importance for our company. Schiphol Airport, on the other hand, is within easy reach’.

Wise Solutions, Inc. Europe
President Kennedylaan 19, The Hague
+ 31 70 392 72 20
Mr. P.H. Versteeg, Director European Operations

4.1 Strong presence of sales & marketing and headquarters
The West-Holland region is part of the ‘Randstad region’. This is where the main public and business
services activities in the Netherlands are concentrated. Not surprisingly, therefore, most foreign-based
companies in West-Holland have sales and marketing as their core activity. Besides sales and marketing,
headquarters are well represented. These activities all together account for more than 51% of the foreign
operations in the region, and more than half (59%) of the jobs created (see table 5 and figure 3 and 4).
Companies that have headquarters in West-Holland are for instance Dutchtone/Orange, T-Mobile and
Siemens (see also table 6). Over half of these foreign headquarters operations are located in the largest city
within the region, The Hague (25 out of 46).

4.2 Industrial operations less well represented
Industrial operations are less well represented in West-Holland than end-users opting for offices. However,
still some 17% of the foreign-based companies has a manufacturing/assembly facility, creating over 5.300
jobs. Table 7 gives insight in some main production centers in the region; for instance 3M and Avery
Dennison. Only a small 5% of the foreign companies operates in distribution.

The number of foreign R&D-companies in West-Holland is rather small, 8 companies creating 323 jobs.
Some examples of R&D-operations are: Halliburton (Leiderdorp) and Cabot Technical Center (Leiden).

Several foreign companies have a backoffice operation in the area. For example the call centers of and T-Mobile, and the shared services center of Syntegra. Backoffice’s account for 4% of
the number of jobs created.

Table 5: Number of companies and number of jobs by type of operation
Type of operation             Number of companies             Number of jobs              Average size
                                      Abs.             Rel.          Abs.          Rel.
Sales/marketing/consultancy           137           38,5%          10.607          31%                    77
Manufacturing/assembly                 60             17%           5.328          16%                    89
Wholesale                              48           13,5%           1.677           5%                    35
Headquarters                           46             13%           9.477          28%                   206
Distribution                           17              5%           1.241           4%                    73
Research & Development                  8              2%             323           1%                    40
Call Center/Shared services             7              2%           1.489           4%                   212
Other                                  33               9%          3.738       11%                      113
Total                                 356             100%         33.880      100%                       95
Source: Stec Groep, 2003

Figure 3: Number of companies by                       Figure 4: Number of jobs by type
type of operation (%) (N=356)                          of operation (%) (N=33.880)






Source: Stec Groep, 2003                                Source: Stec Groep, 2003

Ondeo Nalco, with its head office in the United States, is active in water treatment and process chemicals. Since 1994,
its European headquarters is based in Leiden (Oegstgeest). Over 110 people are employed here: 45 in R&D-activities
and 65 people in staff management functions. Overall 3.000 employees work for Ondeo Nalco in Europe, on a total of
10,000 globally.

Before Ondeo Nalco opened its European headquarters in Leiden, the European office was located in Paris. ‘Because of
a change in organizational structure, we looked for an other location for our European office/technical center’, Mr.
Brinkhoff, director Environment, Health and Safety explains. ‘We first made a selection for a country in Europe. In the
beginning of the nineties we choose the Netherlands, mainly for the following reasons: first of all the financial climate
of the Netherlands was good (for instance the corporate tax rate was attractive for American companies), secondly the
level of education in the Netherlands is high. Besides that, the Netherlands is a neutral country in Europe. The
accessibility by air, road and train is also a positive factor for the Netherlands. Last of all, the Dutch work ethics are
high and the knowledge of English is above average’, Mr. Brinkhoff declared.

In the Netherlands, Ondeo Nalco decided for Leiden for the location of their new European office. According to Mr.
Brinkhoff, the crucial factors to choose this site were the proximity of Leiden to the international Schiphol Airport and
the international business community in the region (an American school is situated in Wassenaar for instance). The
special chemical faculties on the University of Leiden and other special technical schools and institutes in the region like
TNO were also positive points in attracting (new) employees and in the exchange of know-how. Furthermore, office
space in Leiden is cheap, compared to for instance larger cities like Amsterdam, Paris or Frankfurt.

Only point to improve in the regional business climate is the accessibility by road from the direction Utrecht/Almere and
Breda/Tilburg/Den Bosch. However, the overall impression of the regional business climate in West-Holland is good.

ONDEO Nalco Europe
Ir. G. Tjalmaweg 1, Oegstgeest/P.O. Box 627, Leiden
+ 31 71 524 11 00
Mr. H.F. Brinkhoff, Director Environment, Health and Safety

Table 6: Main headquarters of foreign companies in West-Holland

Company                            Location                           Country
1.   Dutchtone/Orange                                    The Hague                     France
2.   T-Mobile                                            The Hague                  Germany
3.   Kvaerner                                            Zoetermeer                  Norway
4.   Siemens                                             The Hague                  Germany
5.   Casema                                              The Hague              United States
Source: Stec Groep, 2003

Table 7: Main production facilities of foreign companies in West-Holland

Company                            Location                           Country
1.   Centocor                                              Leiden               United States
2.   Avery Dennison                                  Hazerswoude                United States
3.   3M                                              Zoeterwoude                United States
4.   Alstom                                               Rijswijk                     France
5.   Pirelli Cables & Systems                                Delft                       Italy
Source: Stec Groep, 2003

Gilson, based in Madison – USA, is a leading manufacturer of specialized analytical instrumentation for the
pharmaceutical and biotechnology industry since the early 1950's. It’s European headquarters is located in The Hague.
Main activities in the Netherlands are European sales, marketing and customer service co-ordination, logistics and
centralized order entry for 10 European countries. At this moment, 50 employees work with Gilson in the Netherlands
and approximately 100 in the offices spread over the European continent.

The office in The Hague is a true mix of the international society. Gilson has native speakers to cover over 20
languages. According to Mr. Fenster, European General Manager, the three most important reasons to locate in the
Netherlands were the pro-American labor and tax laws, the easy access to different languages and the availability of
skilled professionals. ‘The Netherlands has a good educational system and a strong international position in technology’,
says Fenster.

In the Netherlands, Gilson first looked at the Schiphol-area: ‘Because of high (office)costs and less availability of space
in the Amsterdam-area, we looked at the regions The Hague and Utrecht. The city of The Hague is very international,
there is a great multilingual labor force in the region which helps us to support our local operations with local people’.
Besides the talented labor pool, Fenster finds the logistic hub A4 to Schiphol Airport and the European mainland very
strong points in the business climate. Quality of life for foreign employees (for instance international clubs) is also good.
Furthermore, the proximity to the knowledge base in Leiden is a positive point for the company: we have good
relationships with Leiden University Medical Center (LUMC) and some of the spin-off companies located in the region.

Improvements to the business climate Fenster finds in the Dutch employment regulations: ‘The Dutch employment law
is far different compared to the one in the United States. The Dutch employment laws make organizations not as
flexible as you may wish in an emerging market’. ‘Furthermore, the customer service focus needs to be developed
further in Europe. Gilson is a high quality and high service company. We aim to provide the same level of excellent
service and quality to our clients in Europe as we do in the USA. This is an area where we really distinguish ourselves’,
says Mr. Fenster. ‘Looking back at the period of planning and the first year of operation, I am happy we have chosen
Holland as our European seat’.

Gilson International
Laan van ’s-Gravenmade 80, Rijswijk/The Hague
+31 70 307 36 00
Mr. J.C. Fenster, European General Manager

5.1 The main sectors are: machines & appliances, IT and business services
Most foreign companies in West-Holland operate in the sector machines and appliances (16%) and IT or
business services. IT and business services together account for over 26% of the total foreign-based
companies in West-Holland. The sector IT stands out in the number of jobs created: 20% of total
employment in foreign-based companies in West-Holland. Other large sectors in West-Holland are chemicals
(including oil & gases) and electronics (see table 8).

5.2 Strong presence of life sciences
Important point of notice is that life sciences is the sixth largest sector in West-Holland with nearly 6% of
foreign companies and more than 5% of jobs (see table 8). For Dutch standards, this is a high figure (see
chapter 7). Approximately 35% of companies in West-Holland operating in life sciences is located in Leiden.
Leiden is one of the main life sciences centers in the Netherlands. Main contributors are Leiden University
Medical Center (LUMC) and the BioSciencepark, as well as several (inter)national companies such as

Table 8: Number of companies and number of jobs by sector
Sector                          Number of companies            Number of jobs            Average size
                                        Abs.            Rel.           Abs.       Rel.
Machines & appliances                    56           15,7%          4.750      14,0%                    85
IT                                       49           13,8%          6.818      20,1%                   139
Business services                        45           12,6%          3.987      11,8%                    89
Chemicals4                               29            8,1%          3.451      10,2%                   119
Electronics                              26            7,3%          3.675      10,8%                   141
Life sciences                            20            5,6%          1.848       5,5%                    92
Financial services                       12            3,4%          2.228       6,6%                   186
Logistics                                12            3,4%            740       2,2%                    62
Metal                                     9            2,5%            356       1,1%                    40
Plastics                                  7            2,0%            488       1,4%                    70
Construction                              6            1,7%            925       2,7%                   154
Food                                      6            1,7%            432       1,3%                    72
Automotive                                6            1,7%            102       0,3%                    17
Energy                                    6            1,7%            210       0,6%                    35
Paper & cardboard                         5            1,4%             96       0,3%                    19
Textile                                   4            1,1%            121       0,4%                    30
Office supplies                           3            0,8%             32       0,1%                    11
Graphics                                  2            0,6%            181       0,5%                    91
Industry other                           43           12,1%          2.780       8,2%                    65
Other                                    10            2,8%            660       1,9%                    66
Total                                   356            100%         33.880       100%                    95
Source: Stec Groep, 2003

    Included are oil & gases.

The Leiden based company Centocor is active in the life sciences industry. The Leiden branch is specialized in
production activities and the support of clinical research. Currently, about 880 people work for Centocor in Leiden. In
1984, the original American company decided to set up a branch in Europe: ‘At that time, it was difficult to export
American medicines which were not approved for the European market. Besides, the approval of medicines from
America turned out to be an extensive process’, Mr. P. Tetteroo, director of Centocor declared.

In order to find a suitable location for the European production plant, Centocor focused on Luxemburg, Ireland and the
Netherlands. ‘Eventually, we decided to choose for the Netherlands’. Mr. Tetteroo: ‘At that time, the Netherlands had
rich and advanced knowledge in the life science area. What perhaps also played a role in the decision-making process
was the fact that the founder of the company in America is a Dutchman. Within the Netherlands, Leiden turned out to
be the best choice because the university and the city council were involved in the development of a BioSciencepark.
Especially in the early stages, the nearness of the Leiden University Medical Center (LUMC) and other related companies
turned out to be of great importance in the search and exchange of know-how’.

Within the current location climate in the Netherlands, Mr. Tetteroo is less enthusiastic about the Dutch tax climate:
’The tax climate is unfavorable compared to other countries; in Ireland, Puerto Rico and Singapore the tax climate for
production facilities in the pharmaceutical industry is much better’. About the regional location climate he stated: ‘In
short term we have the ambition to expand our branch in the Netherlands. We do get a lot of support from the West-
Holland Foreign Investment Agency and the involved municipalities. A positive point about the business climate is the
nearness of Schiphol Airport. Because of this, we are able to deliver our products to the international market very fast.
Moreover, synergy advantages on the BioSciencepark can be found in the exchange of know-how with other companies
and the Leiden University Medical Center. A weaker point is that the companies are very close to each other and that
there is hardly any available floor space in the region. Centocor has very specialized wishes with regard to floor space’.

According to Mr. Tetteroo, improvements in the business climate can be realized through better maintenance and
improving the environment of the BioSciencepark: ‘At the moment, the situation is not at its best (too dark, dirt on the
streets, et cetera) and there is no architectural unity in the estate’. Furthermore, he would rather see the new industrial
plan in Oegstgeest attached to the BioSciencepark in order to create more possibilities for the park.

Einsteinweg 92, Leiden
+31 71 524 24 44
Mr. P. Tetteroo, Director

6.1 Within West-Holland The Hague attracts major share of foreign-based companies
Over 73% of the foreign operations in West-Holland is located in the four largest municipalities in West-
Holland. These municipalities are The Hague/Rijswijk, Zoetermeer, Leiden and Delft. More than 82% of all
jobs created by foreign companies is concentrated in these municipalities (see table 9).

Approximately one third of all foreign-based companies and 38% of jobs within foreign companies in West-
Holland is located in the city of The Hague. The Hague is home for most of the headquarters (see also
chapter 4) and sales and marketing offices in the region.

Also around half of the foreign IT-companies is located in The Hague. The majority of life sciences
companies is located in Leiden (see also chapter 5). Zoetermeer has a strong attraction for sales and
marketing offices; some 45% of the foreign companies in Zoetermeer has sales and marketing as main
activity. The four main municipalities are less attractive for production facilities and distribution centers. In
general these type of operations tend to opt for the smaller municipalities in West-Holland such as
Bodegraven and Sassenheim.

The city of The Hague is home to most of the largest foreign companies in West-Holland; some of the
largest telecom-companies such as Dutchtone/Orange, T-mobile (the former Ben) and Casema are located
here. Also Leiden (Centocor and Nalco) and Zoetermeer with Siemens, Astra Zeneca and Toshiba have some
large foreign companies within their frontiers.

The US company Composite Partners International manufactures products of composites (non-metal) for the aviation
and space industries. Since 2002, the production plant has been established on the Ypenburg Estate in The Hague, in
the former Fokker Aircraft plant. ‘Currently, 14 employees are working in this production plant. However, the company
expects to grow to about 250 employees within three years’. Thanks to the perfect cooperation of the West-Holland
Foreign Investment Agency and the The Hague and Delft City Councils, we were able to start within 6 months.
Besides, the cooperation of the ‘Technologisch Centrum Ypenburg’ foundation and Wereldhave has contributed in a
very positive way’, according to Mr. J. Frudiger, manager operations of the Composite Partners International.

On the question why the company decided for the Netherlands and The Hague as location Frudiger said: ‘The
Netherlands is an American-oriented country, hence, they are fluent in the English language. Moreover, we were able to
take over a lot of expertise of the employees from the former Fokker Aircraft company. Besides, the Dutch labor
legislation and its employees are relatively flexible: for example, in Germany and Italy, it is necessary to negotiate with
the (trade) unions about overtime work’.

Positive facts in the regional business climate for Composite Partners International are the excellent accessibility of the
location along various exit roads (A13 and A4 motorways) and the proximity of the various knowledge centers like
TNO, TU Delft and the Technical Highschool Rijswijk: ‘At the moment we already exchange specified knowledge and
know-how, in the near future we will continue to expand our knowledge relations’, Mr. Frudiger declared.

Composite Partners International
Laan van Ypenburg 70, The Hague
+ 31 70 319 31 34
Mr. J. Frudiger, Manager Operations

Table 9: Number of companies and number of jobs by municipality
Municipality                    Number of companies        Number of jobs                     Average size
                                        Abs.          Rel.         Abs.                Rel.
The Hague                               108          30%       12.831                 38%                    119
Rijswijk                                  47         13%         4.675                14%                    104
Zoetermeer                                46         13%         5.449                16%                    118
Leiden                                    36         10%         2.920                 9%                     81
Delft                                     26          7%         1.680                 5%                     65
Alphen a/d Rijn                           24          7%         1.570                 5%                     65
Zoeterwoude                                9          3%           614                 2%                     68
Lisse                                      7          2%           225                 1%                     32
Leiderdorp                                 6          2%           434                 1%                     72
Sassenheim                                 6          2%           478                 1%                     80
Other5                                    41         11%         3.004                 9%                     67
Total                                   356         100%       33.880                100%                     95
Source: Stec Groep, 2003

Figure 5: Foreign-based companies by                     Figure 6: Number of jobs by municipality
municipality (%) (N=356)             The Hague           (%) (N=33.880)
                                       Alphen a/d Rijn
Source: Stec Groep, 2003               Other              Source: Stec Groep, 2003

 Berkel en Rodenrijs, Bleiswijk, Bodegraven, Boskoop, De Lier, Hazerswoude, Hillegom, Honselersdijk, Kwintsheul,
Leidschendam, Maasland, Noordwijkerhout, Oegstgeest, Pijnacker, Voorburg, Voorschoten, Warmond en Wassenaar.

Figure 7: number of foreign companies main municipalities



                                                        36       6

                                                                 9       24

                        108                             46


7.1 The Dutch database
In 2002, Stec Groep set up the national database ‘Buitenlandse Vestigingen in Nederland’ for
NFIA/Netherlands Foreign Investment Agency. Over 5.000 business operations (with at least 5 employees)
are listed in this database. In this chapter, West-Holland figures are compared to the Dutch situation.
Important point of notice is that this national database does not include foreign companies with less than 5
employees. The information available, however, is sufficient to make a general comparison of West-Holland
versus the Netherlands.

7.2 West-Holland has a relatively large number of US-companies
There is a relatively high number of US-companies in West-Holland as compared to the Netherlands as a
whole. Meanwhile, Asian companies are less well represented in the region. The share of German companies
in the region is comparable to the Dutch figure, whereas the share of direct employment concerned with
these German companies is relatively higher than the national figure.
Table 10: Number of companies and number of jobs
Country/Region                      Number of companies                Direct employment
                                     West-Holland Netherlands           West-Holland    Netherlands
United States                                 35%           31,5%              29%          37,5%
Germany                                       19%           19,5%              20%            14%
United-Kingdom                                14%             14%              15%            15%
Scandinavia                                    7%              7%               7%           6,5%
Europe (other)6                               15%             17%              24%            18%
Asia                                           6%              9%               3%             7%
Other                                          4%              2%               2%             2%
Total                                        100%            100%             100%           100%
Source: Stec Groep, 2003

    Includes for instance: France, Belgium, Switzerland and Austria.

7.3 Lower share of ‘traditional’ activities than national figure
With reference to the Netherlands, there is a lower share of ‘traditional’ activities in West-Holland.
Manufacturing/assembly and distribution in West-Holland accounts for over 22% of companies, the Dutch
share of these companies is 38%. The share of sales- and marketing-offices and headquarters is relatively
higher compared to the Dutch figure (over 51% in West-Holland vs. 29% national). Not surprisingly,
headquarters in the Netherlands are mainly operating in the ‘Randstad’, because of international allure and
infrastructure and direct access to customers and other companies (face-to-face contacts).
Table 11: Number of companies and number of jobs by type of operation
Type of operation              Number of companies         Number of jobs
                                West-Holland   Netherlands West-Holland      Netherlands
Sales/marketing/consultancy           38,5%           23%           31%          19,5%
Manufacturing/assembly                  17%           28%           16%           42%
Wholesale                             13,5%           24%            5%            10%
Headquarters                            13%            6%           28%           11%
Distribution                             5%           10%            4%             9%
Research & Development                   2%            2%            1%             1%
Call Center/Shared services
center                                   2%            1%            4%             2%
Other                                    9%            6%           11%           5,5%
Total                                  100%          100%          100%           100%
Source: Stec Groep, 2003

7.4 Stronger presence of life sciences, chemicals, IT and services in West-Holland
West-Holland has a relatively strong presence of life sciences and chemicals compared to the Dutch figure.
Both in number of companies and jobs created. IT and business services in West-Holland are also relatively
well represented (number of companies: over 26% in West-Holland vs.19% national). On the other hand, the
logistics sector is fairly small in West-Holland (both in number of companies and number of jobs).

Table 12: Number of companies and number of jobs by sector
Sector                       Number of companies       Number of jobs
                             West-Holland  Netherlands West-Holland   Netherlands
Machines & appliances             15,7%          11%         14,0%         8,2%
IT                                13,8%          11%         20,1%        15,8%
Business Services                 12,6%           8%         11,8%         8,4%
Chemicals                          8,1%           7%         10,2%         7,2%
Electronics                        7,3%         7,5%         10,8%         6,3%
Life sciences                      5,6%           5%          5,5%         3,3%
Financial services                 3,4%           3%          6,6%         3,9%
Logistics                          3,4%           9%          2,2%         8,3%
Metal                              2,5%           5%          1,1%         4,9%
Plastics                           2,0%           3%          1,4%         3,7%
Construction                       1,7%           4%          2,7%         2,8%
Food                               1,7%           5%          1,3%         7,3%
Automotive                         1,7%           3%          0,3%         4,3%
Energy                             1,7%         0,5%          0,6%         0,9%
Paper & cardboard                  1,4%           2%          0,3%         2,8%
Textile                            1,1%           2%          0,4%         1,2%
Office supplies                    0,8%           1%          0,1%         0,6%
Graphics                           0,6%           1%          0,5%         1,1%
Industry other                    12,1%          11%          8,2%         7,3%
Other                              2,8%           1%          1,9%         1,7%
Total                              100%         100%          100%         100%
Source: Stec Groep, 2003

The European headquarters of AMS, an American consultancy company in the IT-sector, is located in The Hague.
Currently, about 60 people work at this site. About ten years ago, the branch has been established on behalf of a big
project in Switzerland and the Netherlands and some other countries.

Mr. R. Van Oirsouw, director of AMS, explains why the Netherlands and especially The Hague were chosen. ‘At that
time, a lot of Americans were working for AMS. The Netherlands offers a high standard accessibility for international
employees with their international airport at Amsterdam. The presence of KPN, one of our main clients in The Hague
can be seen as an important factor in the decision to locate in The Hague. The good accessibility for both public
transport and cars are important benefits for the business climate of The Hague. Besides, office rents in The Hague are
fair compared to the international market. Moreover, three of our telecom-operators and clients, namely
Dutchtone/Orange, KPN and T-Mobile are active in The Hague’.

Main points for improvement are according to Mr. Van Oirsouw the Dutch tax regime and the labor legislation. The
labor legislation is too much focused on the protection of employees, Mr. Van Oirsouw said. ‘The labor legislation
makes us reluctant in attracting Dutch employees’. Within the region, AMS has a perfect relation with other companies
and knowledge institutes, among them the TU Delft. ‘For the attraction of junior IT-specialists in particular we use the
pool of graduates from Delft Technical University, said Mr. Van Oirsouw.

AMS Netherlands
Malietoren, Bezuidenhoutseweg 12, The Hague
+31 70 378 70 00
Mr. R. Van Oirsouw, Director

8.1 International organizations in The Hague
In this chapter the main international organizations and institutions, which the city The Hague is known for,
are listed.

United Nations (related)
• International Court of Justice (ICJ)
• International Criminal Tribunal for Former Yugoslavia (ITY)
• International Criminal Court (ICC)
• Organization for the Prohibition of Chemical Weapons (OPCW)
• UN Environment Programme GPA Coordinating Office

European organizations
• Europol
• Eurojust
• High Commissioner on National Minorities (OSCE)
• Carnegie Foundation

• Nato C-3 Agency

• International Association of Prosecutors
• Permanent Court of Arbitration
• The Hague Academy of International Law
• The Hague Conference on Private International Law
• T.M.C. Asser Institute for International Private- and Public Law

• Belgium Netherlands Language Union
• Benelux Trade Mark Office
• Coalition for the International Criminal Court
• International Confederation of Midwives
• International Federation for Housing and Planning
• International Foster Care Organization
• International Institute for Communication and Development
• International Network for Urban Development
• International Nickel Study Group
• International Organization for Migration
• International Pharmaceutical Federation
• International Service for National Agricultural Research (ISNAR)
• Iran - United States Claims Tribunal
• Unrepresented Nations and Peoples Organization (UNPO)

• European Patent Office
• IRC, International Water and Sanitation Centre
• International Statistical Institute

National oriented
• Bureau Europese Commissie in Nederland
• Voorlichtingsbureau Nederland Europees Parlement
• Unicef Netherlands

Total number of employees (embassies included): approximately 8.000.

Finnish Nokia has a marketing-, sales- and support-office in The Hague with about 200 employees. In the early nineties,
Nokia started in Leiden. In 1995, however, they moved to The Hague. The most important reason for Nokia to establish
in West-Holland was the fact that important clients like KPN, T-Mobile and Dutchtone/Orange are based here with large
headquarters-operations. Besides, the region offers good accessibility to Schiphol Airport. ‘Many of our employees do a
lot of international travelling. Moreover, international employees from the Nokia head-office in Finland come over
regularly to our Dutch office’, according to Mr. Van Kuppeveld.

In addition to the presence of clients and the international accessibility of the region, Mr. Van Kuppeveld is very positive
about the international orientation of the region: ‘Nokia has a large group of foreign employees. Therefore, the presence
of international clubs and communities in the region is very positive for our employees’. The attraction of new
employees is not very difficult for Nokia, mainly due to the less positive economic situation at the moment. In addition,
the strategic location with regard to clients and suppliers is a major plus, according to Van Kuppeveld. ‘The main
weaker aspect of this region is the traffic congestion. This is not insuperable, however, considering the advantages in
the region’.

Nokia Netherlands
Loire 148, The Hague
+31 70 337 91 00
Mr. F. Van Kuppeveld, Business Manager


The following definitions and restrITions were used to collect data of foreign companies in the region West-
• A company is considered foreign when at least 50% of the shares of the facility/company established in
   the Netherlands is owned by a foreign company;
• Involved are business operations of foreign companies that are of a substantial size, only operations
   employing at least 2 employees at the time of survey are listed in the database;
• When foreign companies own several facilities in the Netherlands, these facilities are considered as
   separate business operations;
• Operations in retail-, tourist-, hotel/restaurant- and non-profit are not included;
For each operation to enter the database the following facts had to be collected: name and address, main
type of operation(s)/activity, sector, number of jobs. In the end, 356 business operations are listed in the
database for West-Holland.

Important input for collecting information about the foreign companies in the region is the database
‘Buitenlandse Vestigingen in Nederland’ which Stec Groep recently set up for NFIA/Netherlands Foreign
Investment Agency. Over 5.000 business operations (with at least 5 employees) are listed in this national

Sources used for data collection:
 • West-Holland Foreign Investment Agency (WFIA);
 • Municipalities;
 • The province of South-Holland;
 • Embassies;
 • (Foreign) Chambers of Commerce;
 • Press releases and Internet.

Furthermore the data was checked by contacting the firms, either by telephone, e-mail or fax. Also sources
of data such as ABC-business guide were used to gather additional facts on business operations.

Below all different facilities or types of operation used in this research are defined:
•   Headquarters; decision, strategic or co-ordination center of a company, operating on different
    geographical scales. For example: European, Benelux or national.
•   Sales/marketing/consultancy; office-facility mainly focused on serving clients and expansion of market-
    share in specific region.
•   Call center; dedicated and separate facility handling customer contacts through multi-media
    communication (telephone, fax, e-mail, internet) systems. Includes inhouse and outsource call centers as
    well as Paneuropean call centers or customer care/contact centers.
•   Shared services center; facility in which backoffice support functions, such as HR, financial
    administration and help desks are concentrated.
•   Research & development; main activity is to develop, design, and/or test (new) products and processes.
•   Manufacturing/assembly; industrial manufacturing/production and/or assembly operations.
•   Distribution; warehousing and/or distribution of products, including value added logistics or services. For
    example: European Distribution Center or European Logistics Center.
•   Wholesale; business to business storage and trading of products.
•   Data center; establishment that handles transportation and storage of large amounts of data-
    communication being its own or third parties’ data, also called a datahotel.
•   Other; all activities not listed above, for example holding companies or training centers.

All sectors used in this research to categorize facilities/operations are listed here and specified when
necessary. In general these definitions are based on BIC-codes that are used by the Dutch Chambers of
• Business services; business to business services, includes consultancy, accountancy, HR-management
    among others.
• Financial services; parties acting as agent between supply and demand of capital: banking and insurance
    for example.
• IT; e-commerce, software, hardware, Internet-services, telecom.
• Logistics; transportation, distribution and storage.
• Electronics; consumer-electronics, electronic machinery, components and appliances, measuring/control
• Machines & appliances; manufacturing and repair of machines and appliances to be used for industrial
• Metal; metal and metal products.
• Textile; textile products and clothes, including sportswear.
• Paper & cardboard; paper and cardboard (products).
• Food; food, drinks and tobacco.
• Plastics; plastics and rubber products.
• Chemicals; (petro)chemical products (oil and gases, base chemicals, synthetics, agricultural among
• Graphics; printing-offices, publishing houses and reproduction of media.
• Office supplies; related to all products used in offices.
• Automotive; cars, trucks and other vehicles, related accessories and parts and transportation equipment.
• Life sciences; medical technology and devices, biotechnology and pharmaceuticals.
• Construction.
• Energy.
• Industry (remaining); all firms operating in industrial sectors not specified above, for example aerospace,
    recycling, wood and furniture industries.
• Other; not belonging to one the sectors named above, for example holding companies or agriculture.